FRANKFORT, Ky. (April 17, 2025) — Kentucky’s seasonally adjusted preliminary March 2025 unemployment rate was 5.2%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary March 2025 jobless rate was down 0.1 percentage points from February 2025 and up 0.4 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for March 2025 was 4.2%, which was up 0.1 percentage points from February 2025, according to the U.S. Department of Labor.

Labor force statistics, including the unemployment rate, are based upon estimates from the Current Population Survey of households. The survey is designed to measure trends in the number of people working and includes jobs in agriculture and individuals who are self-employed.

Kentucky’s civilian labor force was 2,117,625 in March 2025, an increase of 2,773 individuals from February 2025. The number of people employed in March increased by 3,111 to 2,006,555 while the number unemployed decreased by 338 to 111,070.

“For the past three months, workers have been finding jobs at a faster pace than they are entering the labor market,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “This resulted in a slight decrease in the state’s unemployment rate.”

In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment increased by 6,300 jobs to 2,053,900 in March 2025 compared to February 2025. Kentucky’s nonfarm employment was up 18,600 jobs or 0.9% compared to March 2024.

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to the survey, employment increased from February to March for seven of Kentucky’s major nonfarm North American Industry Classification System (NAICS) job sectors in March 2025, decreased for three, and was unchanged for one.

The number of positions in the construction sector jumped by 3,500 jobs from February 2025 to March 2025 and was up 7,500 positions or 8% from one year ago.

“Kentucky’s construction sector reported two months of strong employment growth—4,200 additional jobs in February and 3,500 additional jobs in March,” said Clark.

Employment in Kentucky’s manufacturing sector increased by 2,600 jobs from February 2025 to March 2025. Employment was up by 2,100 jobs in the durable goods manufacturing subsector and 500 jobs in the non-durable goods manufacturing subsector. Kentucky’s manufacturing employment rose by 2,400 positions or 0.9% compared to March 2024.

Employment in the leisure and hospitality sector rose by 1,400 jobs in March. Employment in this sector was unchanged from one year ago. The accommodations and food services subsector was up by 1,300 positions from February to March. The arts, entertainment and recreation subsector added 100 jobs in March.

The educational and health services sector added 800 positions in March 2025, all of which came from gains in the health care and social assistance subsector. Since last March, this sector has grown by 7,500 jobs or 2.4%.

The trade, transportation and utilities sector increased by 100 positions from February to March and was up 1,800 jobs compared to a year ago. Among the subsectors, employment was down 200 jobs in wholesale trade; up 300 positions in retail trade; and unchanged in transportation, warehousing and utilities.

The financial activities sector added 100 jobs from February 2025 to March 2025. The finance and insurance subsector gained 200 jobs, but these gains were partially offset by a loss of 100 jobs in the real estate, rental and leasing subsector. This sector had 500 fewer positions compared to March 2024.

Employment in Kentucky’s information services sector increased by 100 positions from February to March. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications. The number of jobs in this sector dropped by 100 positions from one year ago.

In the government sector, employment was unchanged from February 2025 to March 2025. Employment did not change within each of the three government subsectors: federal, state and local. The total number of government jobs rose by 4,100 positions or 1.3% compared to March 2024.

The state’s mining and logging sector decreased by 100 jobs in March. This sector had 700 fewer jobs in March 2025 compared to March 2024.

The other services sector dropped by 300 jobs from February to March but was 300 positions higher than one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

Kentucky’s professional and business services sector decreased by 1,900 jobs in March 2025. Among the subsectors, employment was up 200 jobs in professional, scientific and technical services; up 100 jobs in management of companies; and down 2,200 jobs in administrative, support and waste management. The sector had 3,700 fewer positions compared to March 2024.

“The administrative, support and waste management subsector includes employment services and temporary help services,” said Clark. “While the workers who fill these jobs are reported in this subsector, they are often temporarily assigned to positions in other sectors, such as manufacturing. A decrease in these jobs could occur when employers cut temporary workers from their payrolls. It can also occur when employers make these positions permanent. When this happens, employment in the administrative, support and waste management would decrease, but employment in other sectors would increase.”

Civilian labor force statistics include nonmilitary workers and unemployed Kentuckians who are actively seeking work. They do not include unemployed Kentuckians who have not looked for employment within the past four weeks.

Kentucky’s statewide unemployment rate and employment levels are seasonally adjusted. Employment statistics undergo sharp fluctuations due to seasonal events, such as weather changes, harvests, holidays, and school openings and closings. Seasonal adjustments eliminate these influences and make it easier to observe statistical trends. However, due to the small sample size, county unemployment rates are not seasonally adjusted.

To learn more about Kentucky labor market information, visit http://kystats.ky.gov/KYLMI.